Nio Inc slumps again as growth stock weakness continues
- NYSE: NIO fell by % during Wednesday’s trading session.
- Nio and other EV stocks continue to sell off in 2022.
- Tesla and Lucid are under fire for their recent headlines.
NYSE: NIO may be receiving rave reviews from the automotive industry and Wall Street analysts alike, but that has not translated to gains for its stock so far in 2022. On Wednesday, shares of Nio fell by _% and closed the trading session at $___. It was another bloody day for the broader US markets, as the Dow Jones saw its first decline of the new year, and the NASDAQ and S&P 500 continued to tumble, falling by ___% and ___% respectively. Why were the major indices down in the red on Wednesday? The Federal Reserve has started to taper its bond purchases in the initial stage of the plan that will hopefully finish in March. Early talk of the Fed shrinking its massive balance sheet could have detrimental effects on the stock market in 2022.
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Electric vehicle names continued to be dragged down by the ongoing growth sell off this year, as little has changed since the calendar has turned. On Wednesday, shares of Tesla (NASDAQ: TSLA), Lucid Group (NASDAQ: LCID), Rivian (NASDAQ: RIVN), XPeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) were all down considerably during the session. After a bullish period from 2020 to mid-2021, it seems as though the high-flying valuations are finally catching up to these high growth companies.
NIO stock price
Tesla and Lucid have been making their own headlines as of late which has definitely added to the current bearish sentiment. First, Tesla raised some controversy over the weekend when it announced it was opening a showroom in the Xinjiang Province of China. The region has been accused of abuses against mostly Muslim ethnic minorities. Meanwhile, Lucid has had some outrage as some of its very expensive Air Dream vehicles have been delivered without features included. These are just software updates so they could be added in the future, but needless to say Lucid is not ingratiating itself well with its first set of customers.
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